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News Corp posts $US643m FY loss

Prashant Mehra  |  11 Aug 2017Text size  Decrease  Increase  |  

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SYDNEY - [AAP] Decline in print advertising, foreign exchange fluctuations, and a lesser number of weeks in the period have contributed to a 2 per cent decline in media giant News Corp's (ASX: NWS) full-year revenue.

It reported $US8.14 billion in revenue for the year to June 30, down from $8.29 billion in the previous year, with the contraction amplified by a shorter reporting period.

The Rupert Murdoch-led company on Friday reported a group-wide loss from continuing operations of $US643 million ($A818 million), sharply reversing from the $US235 million in operating income last year.

The slide was driven by a $US785 million writedown of fixed assets at its Australian and UK newspapers, a $US227-million writedown of its investment in Foxtel and higher tax expense.

However, earnings before interest, tax, depreciation, and amortisation (EBITDA) for the year was $US885 million, up 29 per cent from the previous year, which had included two one-off items.

News Corp chief executive Robert Thomson said 2016/17 was a significant year for the company.

"We saw tangible improvement in profitability, powered by the fast-growing digital real estate services segment, and we charged a premium for premium content while focusing on operating efficiencies," Mr Thomson said in a statement.

News Corp-controlled online real-estate advertiser REA Group (ASX: REA) on Friday reported a 12 per cent rise in net profit to $228 million while revenue from core operations rose 16 per cent to $671.2 million.

Mr Thomson said digital real estate accounted for almost 40 per cent of the company's profit in the year and he expected earnings from the sector to expand in coming years.

 

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